The yearly inflation for the East African nation of Kenya increased to 5.9 percent in the month of March 2021. This is the nation’s highest inflation rate in 10 months and is higher than the 5.8 percent that was the case in February 2021.
The continued increase in inflation rate is to a large extent as a result of the increase in the price of a number of food items during the same period, as well as an increase in the price of fuel also during the same period.
Data from the Central Bank of Kenya (CBK) revealed that the price of fuel went up by 15.8 percent. For the price of food items, they increased by 6.7 percent. The prices of Non food and non fuel items increased by 2.3 percent.
Consumer Price Index which essentially measures what buyers pay for with regards to everyday items like clothing and food, rose by 0.4 percent to 113.81 in March 2021 from 113.37 in February 2021.
The Kenya National Bureau of Statistics compiles data with regards to retail prices of a number of household consumption goods and services on the 2nd and 3rd week of the month. It then uses said data to create the consumer price indices and inflation rates.
The increase in the price of fuel has led to a 0.59 percent month on month increase in water index, housing index, electricity index and other fuels’ index. The transport index also increased by 1.49 percent from February 2021 to March 2021.
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